| Printed Page 1830, Mar. 28 | Printed Page 1850, Mar. 28 |

Section 40-2-150. The board shall collect fees which must be deposited in the general fund of the State, in an amount to at least equal the amount appropriated annually in the general appropriations act for the Board of Accountancy.

Section 40-2-160. The board shall make an annual report as provided by law as soon as practicable after the close of its fiscal year which shall end on June thirtieth.

Section 40-2-170. A person, before beginning to practice as a certified public accountant in this State, shall pass an examination before the Board of Accountancy in accounting and auditing and related subjects as the board determines to be appropriate.

Section 40-2-180. (A) An applicant making application for examination shall submit evidence satisfactory to the board that the applicant:

(1) is at least eighteen years of age;

(2) does not have a history of dishonest or felonious acts;

(3) has the following educational background:

(a) Before July 1, 1997, each applicant must have a baccalaureate degree from a college or university recognized by the board including a minimum of twenty-four hours or the equivalent in accounting hours.

(b) After June 30, 1997, each applicant must have at least one hundred fifty semester hours of college education including a baccalaureate or higher degree conferred by a college or university acceptable to the board, the total educational program to include an accounting concentration or equivalent as determined by board rule to be appropriate.

Section 40-2-190. The examination provided for in Section 40-2-170 must be held by the board at least once each year.

The board shall advertise the dates of the examinations at least eight weeks before the date set in a newspaper so as to provide adequate statewide notice. Beginning in 1986, the dates set in a newspaper must be at least by September first for the November examination and by March first for the May examination.

The board may make use of all or any part of the uniform certified public accountants' examination or advisory grading service as it considers appropriate to assist it in performing its duties.

A candidate for the certificate of certified public accountant who has successfully completed the examination required under Section 40-2-170 has no status as a certified public accountant unless and until he has the requisite experience and has received his certificate as a certified public accountant. The experience required is either:

(1) two years of accounting experience in public, governmental, or private employment under the direct supervision and review of a certified public accountant licensed to practice accounting in some state or territory of the United States or the District of Columbia;

(2) five years' experience teaching accounting in a college or university recognized by the board; or

(3) a combination of experience determined by the board to be substantially equivalent to items (1) and (2). The experience must include experience satisfactory to the board, in applying generally accepted auditing standards to financial statements prepared in accordance with generally accepted accounting principles.

The board by regulation may provide for granting a credit to a candidate for satisfactory completion of a written examination in one or more of the subjects provided in Section 40-2-170 given by the licensing authority in another state if at the time he took the examination he was not a resident of this State. The regulation must include requirements the board determines appropriate in order that an examination approved as a basis for credit is, in the judgment of the board, at least as thorough as that included in the most recent examination given by the board at the time of the granting of credit.

The board shall charge each candidate a fee, to be determined by the board, not in excess of two hundred dollars for the initial examination provided for in Section 40-2-170.

Fees for reexamination provided by this section are charged by the board in amounts determined by it, but not in excess of eighty dollars for each subject in which the candidate is reexamined.

An application for examination or reexamination as prescribed by the board must be submitted and the applicable fee paid at least five weeks before the date of the examination. The application must be submitted and the applicable fee paid by September fifteenth for the November examination and by March fifteenth for the May examination.

Section 40-2-200. Certificates of registration as a certified public accountant issued by the board must be signed by the chairman and secretary-treasurer, and the board shall collect from the recipient a fee to be fixed by the board.

A person who holds a certificate of registration as a certified public accountant under this article, which is in full force and effect, may be styled and known as a `certified public accountant' and also may use the designation `CPA'. A certified public accountant also may be known as a `public accountant'. The board shall maintain a list of certified public accountants.

A person who holds a license as a public accountant under this article, which is in full force and effect, may be styled and known as a `public accountant' and also may use the designation `PA'. The board shall maintain a list of public accountants.

Section 40-2-210. The board shall keep a register in which must be recorded the names of all persons examined and whether or not the applicants successfully passed the examination or any part of the examination.

Section 40-2-220. Before a certificate is issued it must be numbered and recorded in a book kept by the secretary-treasurer of the board. In all legal proceedings this record of certificates or a certified copy of the record is evidence of the facts stated in the record.

Section 40-2-230. Persons who, on July 1, 1965, held certified public accountant certificates issued under the laws of this State are not required

Section 40-2-240. (A) The board, upon application in writing, may waive the examination referred to in Section 40-2-170 and issue a certificate to a person who is the holder of a certificate, or the equivalent, as a certified public accountant issued under the laws of any state or territory of the United States or the District of Columbia and:

(1) who has the qualifications required by this article and the regulations of the board; or

(2) when, in the judgment of the board, the requirements for issuing or granting certificates in the other state, territory, or the District of Columbia are substantially equivalent to the requirements established by this article and the regulations of the board, and the other state or political subdivision of the United States grants the same privileges to holders of certificates issued by this State.

(B) The board, upon application in writing, may waive the examination referred to in Section 40-2-170 and issue a certificate to a holder of a foreign designation, granted in a foreign country entitling the holder to engage in the practice of public accountancy if:

(1) the foreign authority which granted the designation makes similar provisions to allow a person who holds a valid certificate issued by this State to obtain the foreign authority's comparable designation;

(2) the foreign designation:

(a) was issued by a foreign authority that regulates the practice of public accountancy and the foreign designation has not expired or been revoked or suspended;

(b) entitles the holder to issue reports upon financial statements; and

(c) was issued upon the basis of educational, examination, and experience requirements by the foreign authority or by law; and

(3) the applicant:

(a) received the designation based on educational and examination standards substantially equivalent to those in effect in this State at the time the foreign designation was granted;

(b) completed an experience requirement substantially equivalent to the requirement set out in Section 40-2-190 and regulations of the board; and

(c) passed a uniform qualifying examination in national standards acceptable to the board.

Section 40-2-270. A registered certified public accountant, public accountant, or accounting practitioner who desires to continue to practice in this State must meet the following requirements on or before the dates indicated:

(1) pay to the secretary of the board annually on or before July first a license fee, to be fixed by the board; and

(2) annually, on or before the last day of February of each year, file with the board, on a form or forms prescribed by the board for this purpose, a certificate of compliance with the continuing education requirements necessary for license renewals as required by Section 40-2-380.

The board, by regulation, may provide a penalty not to exceed five hundred dollars for each violation for failure to comply with item (1) or (2) above.

Upon payment of the fee, any penalty required, and filing of the certificate in proper form, the secretary of the board shall issue a license entitling the applicant to practice in this State until July first of the following year.

The board may, in its discretion, reduce or waive the above requirements in cases of illness, mental or physical incapacity, retirement from practice, and similar situations.

Section 40-2-280. In case of default in payment by a person, the person's certificate of registration as a certified public accountant or license as a public accountant must be revoked by the board upon twenty days' notice in writing by the secretary-treasurer of the time and place of considering the revocation. The deposit of the notice in the United States post office addressed to the person at his last known place of residence or business and registered postage prepaid is presumed to be due and legal

Section 40-2-290. (A) After notice and hearing pursuant to Section 40-2-310, the board may revoke a certificate as a certified public accountant or license as a public accountant issued under this article; suspend a certificate or license for a period of not more than five years; reprimand, censure, or limit the scope of practice of a certificate holder or licensee; impose an administrative fine not exceeding one thousand dollars; or place a certificate holder or licensee on probation, all with or without terms, conditions, and limitations, for:

(1) fraud or deceit in obtaining a certificate or license;

(2) cancellation, revocation, suspension, or refusal to renew authority to engage in the practice of public accountancy in another state, territory of the United States, or the District of Columbia, for any cause;

(3) revocation or suspension of the right to practice before a state or federal agency;

(4) dishonesty, fraud, or gross negligence in the practice of public accountancy or in the filing or failure to file the certificate holder's or licensee's own income tax returns;

(5) violation of a provision of this article or a regulation promulgated by the board under the authority granted by this article;

(6) violation of a rule of professional conduct promulgated by the board under the authority granted by this article;

(7) conviction of a felony, or a crime, an element of which is dishonesty or fraud, under the laws of the United States, of this State, or any other state if the acts involved would have constituted a crime under the laws of this State. The record of conviction, or a copy of the record, certified by the clerk of court or the judge in whose court the conviction is had, is conclusive evidence of the conviction. The word `conviction' includes a plea of guilty or a plea of nolo contendere;

(8) performance of a fraudulent act while holding a certificate or license under this article; or

(B) In lieu of or in addition to a remedy specifically provided in subsection (A), the board may require one or both of the following requirements of a certificate holder or licensee:

(1) a quality review conducted in a fashion as the board may require; or

(2) satisfactory completion of continuing professional education programs as the board may specify.

A `quality review' means a study, appraisal, or review of one or more aspects of the professional work of a person or firm in the practice of public accountancy by a person or persons who hold certificates or licenses and who are not affiliated with the person or firm being reviewed.

(C) In a proceeding in which a remedy imposed by subsections (A) and (B) of this section is imposed, the board also may require the respondent certificate holder or licensee to pay the costs of the proceeding.

Section 40-2-300. After notice and hearing, as provided in Section 40-2-310, the board shall revoke the registration or license of a partnership if at any time it does not meet the requirements prescribed by Section 40-2-30 or 40-2-40 and may revoke or suspend the registration or license of a partnership for any of the causes enumerated in Section 40-2-290 or for:

(1) the revocation or suspension of the certificate of registration or the revocation or suspension or refusal to renew the license to practice of a partner; or

(2) the cancellation, revocation, suspension, or refusal to renew the authority of the partnership or a partner to practice public accounting in another state for a cause other than failure to pay an annual registration fee in another state.

Section 40-2-310. (A) The board may initiate proceedings under this article either on its own motion or on the complaint of a person.

(B) A written notice, stating the nature of the charge against the accused and the time and place of the hearing before the board on the charge, must be served on the accused not less than thirty days before the date of the hearing, either personally or by mailing a copy by registered mail to the address of the accused last known to the board.

(C) If, after having been served with the notice of hearing as provided for in subsection (C), the accused fails to appear at the hearing and defend, the board may proceed to hear evidence against the accused and may enter an order as is justified by the evidence, which order must be final unless the accused petitions for a review as provided for in

(D) At a hearing the accused may appear in person and by counsel produce evidence and witnesses on his own behalf, cross-examine witnesses, and examine evidence as may be produced against him. The accused must be entitled, on application to the board, to the issuance of subpoenas to compel the attendance of witnesses on his behalf.

(E) The board is not bound by technical rules of evidence.

(F) A record of the hearings must be kept and filed with the board.

(G) At all hearings the Attorney General of this State, or one of his assistants designated by him, or other legal counsel as may be employed, shall appear and represent the board.

(H) The decision of the board must be by majority vote, except a decision to revoke the permit must be by unanimous vote of those voting.

(I) A person adversely affected by an order of the board may obtain a review by filing a written petition for review with an administrative law judge, as provided under Article 5 of Chapter 23 of Title 1, within thirty days after the entry of the order. The petition shall state the grounds upon which the review is asked. A copy of the petition must be served upon a member of the board, and the board shall certify and file with the administrative law judge as provided under Article 5 of Chapter 23 of Title 1, a copy of the record upon which the order complained of was entered. The administrative law judge, as provided under Article 5 of Chapter 23 of Title 1, may, in its discretion, stay the effect of the board's order pending its determination of the case.

Section 40-2-320. Upon application in writing and after hearing pursuant to notice, the board may issue a new certificate to a certified public accountant whose certificate has been revoked or may permit the reregistration of anyone whose registration has been revoked or may reissue or modify the suspension of a license to practice public accounting which has been revoked or suspended.

Section 40-2-330. An office established or maintained in this State for the practice of public accounting by a certified public accountant or partnership or professional association of certified public accountants or public accountant or partnership or professional association of public accountants must be registered under this article with the board, but no fee may be charged for registration. An office must be under the direct supervision of a resident manager who may be either a partner or a staff employee holding a license under this article which is in full force and

Section 40-2-340. A person who violates a provision of this article is guilty of a misdemeanor and, upon conviction, must be fined not less than fifty dollars or more than two hundred dollars or imprisoned not less than twenty days or more than sixty days. Each violation constitutes a separate offense and each day's violation constitutes a separate offense.

Section 40-2-350. In addition to another remedy or criminal prosecution, if it appears to the board that a person violated a provision of this article or a regulation or order of the board or a law of this State relating to accountancy, the board may file a suit in equity in its own name, or in the name of the State, on its own relation, and by its counsel, with an administrative law judge, as provided under Article 5 of Chapter 23 of Title 1, alleging the facts and praying for a temporary restraining order or permanent injunction against the person, restraining the person from violating the law, regulation, or order, or commanding the person to obey the law, regulation, or order.

Upon proper application, and showing that the person is not registered or that a renewal certificate has not been applied for or that registration has been denied, revoked or suspended, or that the law or regulation or order has been or is about to be violated or disobeyed, which showing may be made by affidavit, the administrative law judge, as provided under Article 5 of Chapter 23 of Title 1, shall issue a temporary restraining order or injunction and, upon final hearing, shall grant and issue an injunction, including mandatory injunction, upon finding the truth and sufficiency of the allegations of the petition. An administrative law judge, as provided under Article 5 of Chapter 23 of Title 1, may enforce the injunction by punishment for contempt and by other process as is permitted to circuit courts and shall make other orders as its discretion and the rules require. The injunction may be limited in time, perpetual or conditional, as may be necessary and proper to the enforcement of this article or the regulations or orders of the board or the law of this State relating to accountancy.

Section 40-2-360. All statements, records, schedules, working papers, and memoranda made by a certified public accountant or public accountant incident to or in the course of professional service to clients, except reports submitted to a client, are the property of the accountant, in the absence of an express agreement between the accountant and the client to the contrary.

Section 40-2-370. If a statute or regulation of a state agency requires that reports, financial statements, audits, and other documents for a

Section 40-2-380. The board shall promulgate regulations implementing the requirements and reporting for continuing education which must be met by certified public accountants, public accountants, and accounting practitioners. The board shall require no less than sixty hours of continuing educational activities in a two-year period. The board shall require compliance with the regulations as a prerequisite to the issuance of a current license to practice as a certified public accountant, public accountant, or accounting practitioner. The requirements may be waived by the board in individual cases for good cause.

In promulgating these regulations, the board shall recognize the following as meeting the continuing educational requirements:

(1) professional development programs of national and state accounting organizations. Only class hours, or the equivalent, and not students' hours devoted to preparation are counted;

(2) technical sessions at meetings of national and state accounting organizations and their chapters;

(3) courses offered by colleges, universities, technical education centers, and other appropriate educational institutions, including credit and noncredit courses. Each semester-hour credit equals fifteen hours toward the requirement; each quarter-hour credit equals ten hours. In noncredit courses, each classroom hour equals one qualifying hour.

(4) other activities, methods, procedures, devices, and programs which, in the opinion of the board, contribute directly to the professional competence of the licensee.

Section 40-2-510. A person, firm, or professional association not exempt under Section 40-2-530 is considered to be engaged in the practice of offering to render and rendering to the public the services which are regulated by this article if the person, firm, or professional association:

(1) offers to prospective clients in South Carolina to perform for compensation one or more of these services:

(a) the development, recording, analysis, or presentation of financial information including, but not limited to, the preparation of financial statements; or

(b) advice or assistance in regard to accounting controls, systems, and procedures; and

| Printed Page 1830, Mar. 28 | Printed Page 1850, Mar. 28 |